Teen Retailer Rue21 Closing Its Money-Losing Stores
Teen fashion retailer Rue21 is the latest chain to say that it is shuttering some of its stores. The company said in a statement that “as part of our ongoing business transformation into a more cost efficient operator, we are closing unprofitable stores across our fleet in order to focus on our many hundreds of highly profitable locations. The exact number and timing of these closings will be determined in the coming weeks.” Rue21, with storefronts in strip malls and shopping centers across the U.S., is likely suffering from the declining foot traffic that is hobbling so many retailers as shoppers increasingly do their buying online. The store chain is also vying with fast fashion giants like Zara and H&M, who cater to the same trend-focused youthful shopper, though Rue21 stands out with its offerings of plus-sized clothing. Rue21 tweeted the news to its followers on Sunday. “It’s true – we are closing some stores,” the retailer wrote. “It was a difficult but necessary decision. We still have hundreds of locations across the country, and our website Rue21.com, open for business.” Read more at USA Today.